Layer 4-7 Switch Revenues Reach $154 Million in 1Q 2000

Cisco Systems Inc.o Cahners In-Stat Group, a high-tech market research firm based in Scottsdale, AZ, the worldwide Layer 4-7 packet switch market reached $154 million in end-use revenue in 1Q 2000, representing 13% of switch router market. In-Stat expects the overall switch router market to reach more than 11 million ports shipped and $5.5 billion in end-use revenue for 2000, representing an all time high that is 200% greater than the total number ports shipped during 1999.

"Despite holding only 7% or less of the ports shipped in 1Q 2000, switch routers will finally live up to their billing in 2000, with a 36% cumulative quarterly growth rate," said Lauri Vickers, industry analyst for In-Stat's Voice and Data Communications Service.

"The introduction of more Layer 4-7 switches during 2000 will fuel the growth of switch routers not only in the enterprise backbone, but in the service provider core as well, resulting in an exceptional year for the switch router market in 2000."

In-Stat also found that:

• <%=company%> (San Jose, CA) held its number one market share ranking in both ports shipped and sales for the Layer 4-7 switch market followed by Foundry Networks (Sunnyvale, CA), Enterasys Networks (formerly part of Rochester, NH-based Cabletron), and Alteon WebSystems (San Jose, CA).
• North America continues to dominate switch port shipments, representing 49% of the total market in 1Q 2000. However, Europe, Asia, and Latin America are heating up, and combined, are expected to represent the majority of switch port shipments in 2000.
• Quarter to quarter growth in 1Q 2000 was driven by all form factors of Fast Ethernet and Gigabit Ethernet switches.

The report, 1Q 2000 LAN Packet Switch and Hub Market Analysis (No. CQ0002M1), provides quarterly market shares and forecasts for the major LAN Packet switch market segments. As part of the networking quarterly service, the Quarterly LAN Packet Switch and Hub Market Analysis, reviews technology and market trends impacting the overall networking hardware market.

For more information please visit http://www.instat.com/catalog/cat-cq-hub.htm or contact Courtney McEuen at 480/609-4533; cmceuen@instat.com The report price is $2,995 USD.

Edited by John Spofford, Managing Editor